Falcon Oil & Fuel Ltd.
(“Falcon” or “Firm”)
Shenandoah South – 1H nicely IP60 Day Move Charges of three.0 MMcf/d (normalised to six.0 MMcf/d)
26 March 2024 – Falcon Oil & Fuel Ltd. (TSXV: FO, AIM: FOG) is happy to announce that the Shenandoah South 1H (SS-1H) nicely in EP117 achieved above industrial IP60 circulation fee of three.0 MMcf/d (normalised to six.0 MMcf/d over 1,000 metres).
Highlights are as follows:
- The SS-1H nicely in EP117 achieved a median 60-day preliminary manufacturing (IP60) circulation fee of three.0 million cubic toes per day (MMcf/d) over the 1,644-foot (501 metres), 10 stage stimulated size throughout the Amungee Member B-Shale, normalised to six.0 MMcf/d over 3,281-feet (1,000 metres).
- Exit fee trajectory after the 60 days of circulation testing confirmed a gradual low declining curve at 2.76 MMcf/d over the stimulated size (normalised at 5.52 MMcf/d per 3,281 toes) and secure reservoir again stress of 530 psi.
- The SS-1H IP60 circulation take a look at signifies that future growth wells with lateral size of 10,000-foot (3,000 metres) could also be able to delivering common charges of 18.4 MMcf/d over the primary 60 days of manufacturing.
- Outcomes up to now affirm that this area measuring greater than 1 million gross acres beneath 8,850 toes (2,700 metres) is among the finest areas within the Beetaloo Basin to start pilot growth actions.
- Move testing of the SS-1H nicely will proceed for the following 30 days to attain common IP90 circulation charges to higher decide the nicely’s estimated final restoration per nicely (EUR). IP90 circulation fee outcomes are anticipated to be introduced in late April 2024.
- The Beetaloo JV Companions of Falcon and Tamboran B2 Pty Restricted will proceed to progress growth plans for the proposed 40 MMcf/d Pilot Mission on the Shenandoah South location. The challenge is anticipated to require six 10,000-foot growth wells initially to attain plateau manufacturing of 40 MMcf/d. Drilling of the primary of those wells is deliberate to start in Q2 2024 and the JV is concentrating on first gasoline in H1 2026.
- On the finish of February 2024, Falcon held ~US$5 million in money and has the advantage of an additional A$16.67 million gross (~US$2.5 million internet Falcon) carry to assist instant actions.
- Falcon is funded to start drilling of the preliminary two wells in this system and can consider alternatives to assist funding the remaining capital commitments to achieve first manufacturing, together with issuance of fairness and/or debt, analysis of pre-payment for gasoline from the proposed pilot challenge and potential farm-down alternatives.
Philip O’Quigley, CEO of Falcon commented:
“The SS-1H IP60 circulation fee introduced at this time of three.0 MMcf/d, normalised to six.0 MMcf/d over 1,000 metres, demonstrates a gradual low declining curve whereas holding its downhole stress. This augurs nicely for the preliminary growth within the Shenandoah South space as these charges proceed to trace common circulation charges seen within the Marcellus Shale basin within the US.”
Desk 1: Shenandoah South-1 DSU – 20,480 acres
Firm | Curiosity |
Tamboran (B2) Pty Restricted | 77.5% |
Falcon Oil and Fuel Australia Restricted | 22.5% |
Whole | 100.0% |
Desk 2: Breakdown of the SS-1H circulation outcome
SS-1H Charges (MMcf/d) | Precise (501m; 1,644 ft) |
Normalized (1,000m; 3,281 ft) |
Normalized (3,048m; 10,000 ft) |
Peak fee | 12.9 | N/A | N/A |
Common IP30 circulation fee | 3.2 | 6.4 | 19.5 |
IP30 exit fee | 2.9 | 5.8 | 17.6 |
Common IP60 circulation fee | 3.0 | 6.0 | 18.4 |
IP60 exit fee | 2.8 | 5.5 | 16.8 |
Supply: Tamboran
Ends.
CONTACT DETAILS:
Falcon Oil & Fuel Ltd. | +353 1 676 8702 |
Philip O’Quigley, CEO | +353 87 814 7042 |
Anne Flynn, CFO | +353 1 676 9162 |
Cavendish Capital Markets Restricted (NOMAD & Joint Dealer) | |
Neil McDonald / Adam Rae | +44 131 220 9771 |
Tennyson Securities (Joint Dealer) | |
Peter Krens | +44 20 7186 9033 |
This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & Fuel Ltd’s Technical Advisor. Dr. Bada obtained his geology diploma on the Eötvös L. College in Budapest, Hungary and his PhD on the Vrije Universiteit Amsterdam, the Netherlands. He’s a member of AAPG.
About Falcon Oil & Fuel Ltd.
Falcon Oil & Fuel Ltd is a world oil & gasoline firm engaged within the exploration and growth of unconventional oil and gasoline belongings, with the present portfolio targeted in Australia. Falcon Oil & Fuel Ltd is included in British Columbia, Canada and headquartered in Dublin, Eire..
Falcon Oil & Fuel Australia Restricted is a c. 98% subsidiary of Falcon Oil & Fuel Ltd.
For additional info on Falcon Oil & Fuel Ltd. Please go to www.falconoilandgas.com
About Tamboran (B2) Pty Restricted
Tamboran (B1) Pty Restricted (“Tamboran B1”) is the 100% holder of Tamboran (B2) Pty Restricted, with Tamboran B1 being a 50:50 three way partnership between Tamboran Sources Restricted and Daly Waters Vitality, LP.
Tamboran Sources Restricted, is a pure gasoline firm listed on the ASX (TBN) and U.S. OTC markets (TBNNY). Tamboran is targeted on taking part in a constructive function within the international vitality transition in direction of a decrease carbon future, by creating the numerous low CO2 gasoline useful resource throughout the Beetaloo Basin by cutting-edge drilling and completion design know-how in addition to administration’s expertise in efficiently commercialising unconventional shale in North America.
Bryan Sheffield of Daly Waters Vitality, LP is a extremely profitable investor and has made important returns within the US unconventional vitality sector up to now. He was Founding father of Parsley Vitality Inc. (“PE”), an unbiased unconventional oil and gasoline producer within the Permian Basin, Texas and beforehand served as its Chairman and CEO. PE was acquired for over US$7 billion by Pioneer Pure Sources Firm (“Pioneer”), itself a number one unbiased oil and gasoline firm and with the PE acquisition grew to become a Permian pure play firm. Pioneer has a present market capitalisation of c. US$60 billion.
Advisory concerning ahead wanting statements
Sure info on this press launch could represent forward-looking info. Any statements which can be contained on this information launch that aren’t statements of historic truth could also be deemed to be forward-looking info. Ahead-looking info sometimes comprises statements with phrases akin to “could”, “will”, “ought to”, “anticipate”, “intend”, “plan”, “anticipate”, “consider”, “estimate”, “initiatives”, “dependent”, “think about” “potential”, “scheduled”, “forecast”, “outlook”, “finances”, “hope”, “recommend”, “assist” “deliberate”, “roughly”, “potential” or the detrimental of these phrases or comparable phrases suggesting future outcomes. Specifically, forward-looking info on this press launch contains, however just isn’t restricted to, info regarding the IP60 circulation fee of three.0 MMcf/d over the 501 metres 10 stage stimulated size throughout the Amungee Member B-Shale, to the exit fee trajectory after the 60 days of circulation testing exhibiting a gradual low declining curve over the stimulated size and secure reservoir again stress of 530 psi, that the IP60 circulation take a look at outcomes signifies that future growth wells could also be able to delivering common charges of 18.4 MMcf/d, that this area is among the finest areas within the Beetaloo Basin to start pilot growth actions, the circulation testing of the SS-1H nicely persevering with for the following 30 days, IP90 circulation outcomes anticipated to be introduced in late April 2024, the JV persevering with to progress growth plans for the proposed 40 MMcf/d Pilot Mission on the Shenandoah South location, the event of six 10,000-foot growth wells initially to attain plateau manufacturing of 40 MMcf/d, drilling of the primary of those wells deliberate to start in Q2 2024 and the concentrating on of first gasoline in H1 2026, funding to start drilling of the preliminary two wells in this system and analysis of alternatives to assist funding the remaining capital commitments to achieve first manufacturing, together with issuance of fairness and/or debt, analysis of pre-payment for gasoline from the proposed Pilot Mission and potential farm-down alternatives
This info is predicated on present expectations which can be topic to important dangers and uncertainties which can be troublesome to foretell. The dangers, assumptions and different components that would affect precise outcomes embody dangers related to fluctuations in market costs for shale gasoline; dangers associated to the exploration, growth and manufacturing of shale gasoline reserves; basic financial, market and enterprise circumstances; substantial capital necessities; uncertainties inherent in estimating portions of reserves and assets; extent of, and value of compliance with, authorities legal guidelines and rules and the impact of modifications in such legal guidelines and rules; the necessity to receive regulatory approvals earlier than growth commences; environmental dangers and hazards and the price of compliance with environmental rules; aboriginal claims; inherent dangers and hazards with operations akin to mechanical or pipe failure, cratering and different harmful circumstances; potential value overruns, drilling wells is speculative, usually involving important prices which may be greater than estimated and will not lead to any discoveries; variations in overseas alternate charges; competitors for capital, tools, new leases, pipeline capability and expert personnel; the failure of the holder of licenses, leases and permits to fulfill necessities of such; modifications in royalty regimes; failure to precisely estimate abandonment and reclamation prices; inaccurate estimates and assumptions by administration and their three way partnership companions; effectiveness of inside controls; the potential lack of obtainable drilling tools; failure to acquire or maintain key personnel; title deficiencies; geo-political dangers; and threat of litigation.
Readers are cautioned that the foregoing record of vital components just isn’t exhaustive and that these components and dangers are troublesome to foretell. Precise outcomes would possibly differ materially from outcomes prompt in any forward-looking statements. Falcon assumes no obligation to replace the forward-looking statements, or to replace the the reason why precise outcomes may differ from these mirrored within the ahead looking-statements until and till required by securities legal guidelines relevant to Falcon. Further info figuring out dangers and uncertainties is contained in Falcon’s filings with the Canadian securities regulators, which filings can be found at www.sedarplus.com, together with below “Danger Elements” within the Annual Data Kind.
Any references on this information launch to preliminary manufacturing charges are helpful in confirming the presence of hydrocarbons; nevertheless, such charges will not be determinative of the charges at which such wells will proceed manufacturing and decline thereafter and will not be essentially indicative of long-term efficiency or final restoration. Whereas encouraging, readers are cautioned to not place reliance on such charges in calculating the combination manufacturing for Falcon. Such charges are primarily based on discipline estimates and could also be primarily based on restricted knowledge out there right now.
Neither the TSX Enterprise Change nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Change) accepts accountability for the adequacy or accuracy of this launch.
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